Money transactions are a daily part of the record,
But it is increasingly common that a person has lent money but no longer gets it back. When lending money to someone, even a seemingly trustworthy person, you should always consider the potential losses, especially if you are lending a large sum of money. Of course, there are situations in life where the borrower’s financial problems become so great that it is impossible to repay the debt. If the debtor does not deny his or her negligence in repaying the loan, and it is possible to agree that the debtor will start doing things to get the debt back, then the lender may still be too anxious. But there are also people who deny debt. In such cases, action must be taken involving companies or individuals involved in debt recovery; it is also possible to recover the debt through the courts.
If the creditor himself fails to settle with the debtor,
The debt collectors can be involved in the debt recovery process. It is possible to cooperate with both private debt collectors and companies. However, in order for the debt recovery process to legally end in a positive outcome for the lender, it is necessary to have written proof that such a debt actually exists. Unfortunately, if the money is lent on the basis of a verbal agreement, it is not possible to involve a third party who can recover the debt, because there is no evidence that the lender actually lent the money. In debt cases where there is written evidence of the existence of a debt, debt collectors initially try to contact the debtor himself. In order for the debt collection process to be lawful, as well as demonstrable if the proceedings go to court, the debt collectors themselves must also take all steps in writing – contact and send documents, warning letters. Telephone communication can simply prevent the debtor from answering, and it is by no means evident from the telephone that the caller is not a spoof and is indeed active in the debt recovery industry. Often for malicious purposes, the debtor ignores the written correspondence of the debt collectors; it may also happen that the debtor no longer lives at the address to which the letters are sent. In such cases, the third party involved (debt collectors) may have to look for another solution – first having to make sure that there is no change of residence. In the event of a change of residence, debt collectors must legally find the debtor’s current address. However, ignoring communications can also be intentional, simply by not responding to these communications. In such cases, debt collectors try to arrange meetings with debtors by visiting the debtor’s home. However, it is important to know that debt collectors must not cross their boundaries – if the debtor does not want to let the third party involved in the debt in his place of residence and does not cooperate, then the debt collectors have no right to break into a person’s private territory. Likewise, unauthorized persons, such as family members, friends of the debtor, may not be involved in the debt recovery process, or even informed, nor should they inform the employer and arrive at the debtor’s place of work. If it is possible to contact the debtor, the debt collectors submit a document on the debt repayment procedure. If the debtor fails to do so, he has the right to propose his own solution. In any event, until the debt is repaid in full, the debt collectors always have control over the loan repayment process.
However, there are situations where the debt collectors are unable to agree or cooperate with the debtor,
The recovery of the debt may be subject to court action. However, before a court is involved, it is up to the lender to assess whether such a process is necessary – the amount of money lent is not always so high that the court must be involved, which can result in a much higher cost than the value of the debt itself. It is also better for the debtor to understand that the recovery of a debt will involve a lot of costs, so it is better to return the cash loan immediately or through debt collectors. Bringing a debt to court means that the lender must work with a lawyer. However, keep in mind that you and your hired attorney should always try to contact the debtor and collect information such as the properties registered in the Land Register. There are several ways to recover money through the courts, both faster and more efficient, and very long and expensive. It is possible to recover the debt through arbitration. Its decision is mandatory, but if the debt is not voluntarily settled within the time limit, an application must be made to the court. A lawsuit is being opened. In order to speed up the process, it is possible to apply unchallenged enforcement of the undertaking. Such application shall be examined by the judge within 7 days and a judgment shall be given, which shall be binding.
Another option for recovering a debt is to file an insolvency petition with the court. However, the exercise of this option implies that the debtor’s debt is no longer increasing and that individual action by the creditor is no longer possible. Any money recovered in such a process must, moreover, be proportionally shared with the other creditors.